Theravance and GSK form COPD alliance
Theravance, of San Francisco, and GlaxoSmithKline (GSK) have formed an alliance to develop and commercialise novel medicines containing long-acting Beta2 agonists (LABA) for the treatment of respiratory diseases, such as asthma and chronic obstructive pulmonary disease (COPD). The alliance will develop novel compounds, which can be administered once daily, improving on current generation LABAs.
Under the terms of the agreement the LABA compounds from GSK and Theravance will be pooled for development and eventual commercialisation. GSK will have the responsibility to develop and commercialise one or more of the pooled compounds for use as a single agent and/or in combination medicines, utilising GSK's proprietary drug delivery technology. GSK will also have exclusive, worldwide manufacturing and commercialisation rights. Two of these compounds have already entered Phase I studies.
In return Theravance will receive an initial US$50m (€47m) from GSK, and will also receive clinical, regulatory and commercial milestone payments. Based on the continued successful development and commercialisation of its compounds in the pool as single agents and/or in combination medicines, these payments could range up to $495m (€468m).
In addition, Theravance will receive double-digit royalties on product sales of medicines containing any compound in the pool, regardless of the compound's origin.